advertisers cut down print and digital spends. This resulted in a sharp fall of the stock.
Although revenues rose 1 percent to $449 million, this was much below analysts’ expectations of $479.23 million. After adjusting severance costs and other onetime items, the adjusted earnings work out to a loss of one penny a share. The Street had expected earnings of 8 cents a share.
The 7.4 percent rise in circulation revenue has proved to be the silver lining in an otherwise bleak scenario. According to Edward Atorino, an analyst with Benchmark Co, "It wasn't a nice quarter on revenue. The advertising numbers look terrible. I thought they might do a little better. They are caught up in the downslide like everybody else."
The stock tanked 18.50 percent to $8.68.
Spirit AeroSystems to include some charges in 3Q results
Spirit AeroSystems Holdings, Inc.(NYSE:SPR) has said that it expects to record pre-tax charges of approximately $184 million on the 787 program, $163 million on the G650 Wing program, $151 million on the BR725, $88 million on the G280 Wing program, and $4 million on other combined programs. These combined charges of about $590 million will be included in the company's third quarter results.
, President and CEO, "The execution of our diversification and growth strategy has proven very complex as we rapidly expanded our customer-base, manufacturing sites, and product design capabilities, while managing multiple development programs with significant design changes and schedule delays. It is unfortunate that we have struggled on these development efforts. As we move forward our focus is on applying our lessons learned in strong program management, change control, and shop floor disciplines to drive performance on these programs and continue the solid performance on our core production programs,"
To address the said charges, the company has already obtained consent from the lenders. The company has also reached a final settlement with insurers for all claims relating to the severe weather event at its facility in April this year.
Shares of the company slumped 32.60% to $14.60.